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soben

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Re: Pure Speculation

in response to

Re: Pure Speculation

Genew

posted on Dec 18, 2014 03:39PM

Ok, may be we can answer some of the raised questions ourselfs with some old pony tricks...

It is highly speculative, again highly speculative - but I am trying to get a picture of options...

just let it sink in (this is the summary of last years MOU):

Electrovaya Announces MoU with Asian conglomerate

Electrovaya Inc. (EFL CN) has entered into a MoU with an undisclosed Asian conglomerate with interests in the automotive, energy, chemical and other business areas.
The MOU contemplates a relationship that includes:
o Minority Equity interest in Electrovaya (up to 10%)
o Marketing and procurement of Electrovaya's Lithium-ion batteries
o Equity interest in a lithium Ion battery manufacturing plant in India
o Procurement of raw materials and/or facilities for production of Lithium-ion batteries

if no additional shares are offered, the A. C. has to purchase on the open market (cheaper if the stock price stays low)

If additional shares are offered - equity goes into EFL (lower price, 100 days average - gives a cheaper purchase price) - are there any information about issuing rights with regard to the MOU? - Possible indication of liquidity inflows?

The A.C. would use EFL technology for a variety of customers, hence would sell EFL products as "own" products to customers .... mmmh, who could that be??? Siemens? Renault? Daimler/Smart? WE DO NOT KNOW - but have a glimpse on the Nov 5th slide ;)

Then there is this India Tata thing, EFL as well as LG Chem are involved...
http://www.just-auto.com/news/tata-and-lg-in-component-supply-talks_id150582.aspx

And finally, we have a supply and procurement relationship, manifested within the MOU... Does this change our position in working capital... probably... would be good to know who this A.C would be...